The Journal of Forensic Accounting Profession

The Impact of Various Factors on the Effectiveness of Internal Audit in the Public Sector

2025-05-30T10:55:51+00:00

The paper focuses on analyzing key factors influencing the effectiveness of internal audit in the public sector of Bosnia and Herzegovina (BiH). Through multiple regression analysis (Ordinary Least Squares-OLS), the impact of five independent variables (competence of internal auditors, size of internal audit department, relationship between internal and external auditors, management support for internal audit, and independence of internal auditors), two control variables (organization’s sector and total number of employees in the organization), on the dependent variable (effectiveness of internal audit) was measured. Research results indicate that a significant portion (.2 = 45.00%, Adj .2 = 40.90%) of the variability in the effectiveness of internal audit can be explained by the variability of the five independent variables in the model. The largest positive impact on the effectiveness of internal audit is attributed to the size of the internal audit department and the independence of internal auditors. Conversely, management support for internal audit had the least impact, which contradicts our predictions and the results of previous research. The limited impact of management support on the effectiveness of internal audit in the public sector of BiH may stem from a lack of understanding regarding the role and importance of internal audit, as well as from perceiving it as merely a formal legal requirement without substantial value.

(Previously published on Sciendo: https://sciendo.com/article/10.2478/jfap-2024-0006, pod licencom CC BY-NC-ND 4.0)

Auditors' Evolving Responsibilities and the Rising Costs of Professional Negligence: A Comprehensive Examination

2025-05-30T10:55:52+00:00

In recent times, professional negligence has taken centre stage in the news. The inability of auditors to uncover fraud in their clients’ financial records has become a topic of intense debate among industry professionals and regulators, with no clear consensus reached thus far. This paper employs a qualitative research approach to delve into the consequences of professional negligence and why auditors will continue to face the consequences of their failure to detect fraud in their clients’ financial records. Our research findings indicate that auditors will continue to bear the brunt of professional negligence until there is a fundamental shift in their mandate, prompting them to assume a more proactive role in detecting fraud within financial statements. The repercussions of professional negligence extend beyond financial losses, encompassing intangible costs that severely tarnish the reputation of the auditing profession.

(Previously published on Sciendo: https://sciendo.com/article/10.2478/jfap-2024-0007, pod licencom CC BY-NC-ND 4.0)

Catalysts of Sustainability

2025-05-30T10:55:53+00:00

Environmental, Social, and Governance (ESG) criteria have emerged as pivotal benchmarks for assessing corporate sustainability and ethical business practices. This study investigates the transformative role of small and medium-sized enterprises (SMEs) in advancing ESG practices, with a particular emphasis on countries aspiring to European Union membership. Employing a quantitative methodology through a survey questionnaire the research analyzes the challenges and opportunities associated with ESG implementation. Data collected from 51 SMEs across the Balkan region reveal substantial benefits of ESG integration, notably in enhancing operational efficiency and market reputation, with transparency and strategic planning identified as critical drivers. However, SMEs face significant obstacles such as complex regulatory frameworks, limited access to financing, and inadequate training resources. The article proposes targeted strategies to strengthen SME capacity, emphasizing investment in education, technological solutions, and partnerships with key stakeholders. By adopting ESG standards, SMEs not only contribute to sustainable development but also bolster their competitiveness and resilience in a rapidly evolving global market.

(Previously published on Sciendo: https://sciendo.com/article/10.2478/jfap-2024-0008, pod licencom CC BY-NC-ND 4.0)

Impact of Marketing Research on Business Performance

2025-05-30T10:55:53+00:00

This study examined the implications of marketing research on the management of business performance. Marketing research is one of the major bases for the formulation of marketing strategy, which aids in better decision making by providing additional information that is relative to a particular marketing problem. Business organizations must therefore be based on fact and not intuition, to put in appropriate strategies to avert such marketing problems. Five marketing firms in Eket metropolis, Akwa Ibom State were chosen for this study, comprising 20 respondents from each of the firms totaling 100 respondents. The major research instruments were questionnaires, relevant textbooks, and journals. The data collected were analyzed using simple percentages and chi-square (x²) statistics to test the hypotheses. The results indicated, among others, that effective marketing research has a significant relationship with the performance and success of the firms under study. To this end, the study recommended among others: frequent conduct of articulate and well-organized marketing research, employment of professional marketing researchers, or training up staff purely on marketing research from time to time and motivating them so as to bridge the gap between the producer and the consumer.

(Previously published on Sciendo: https://sciendo.com/article/10.2478/jfap-2024-0009, pod licencom CC BY-NC-ND 4.0)

Does Artificial Intelligence Represent a Threat to the Accounting Profession?

2025-05-30T10:55:54+00:00

This paper investigates the impact of artificial intelligence (hereinafter AI) on the accounting profession, emphasizing the need to adapt educational programs and business practices due to the emergence and development of AI technologies. A qualitative method with the help of a semi-structured interview was used to collect primary data. The participants were professionals in the accounting and information technology field who have the relevant knowledge and experience to consider this topic. The research aimed to discover the main problems that may arise when implementing artificial intelligence in the accounting profession, to determine how AI technologies affect the quality of financial reports, and whether education reform in accounting is needed due to the emergence of AI technologies. The results of the conducted research showed that AI technology will find its application in the accounting profession, that the quality of the financial report generated based on AI technology depends on the quality of the entered data, i.e. that the control function of accountants is of crucial importance, and that it is necessary to reform curricula in the context of exploiting the benefits of AI technologies.

(Previously published on Sciendo: https://sciendo.com/article/10.2478/jfap-2024-0010, pod licencom CC BY-NC-ND 4.0)